(1) This Act and the regulation that may be made there under shall not caste any fmancial obligation in any manner on the Government ofNagaland or its agencies, all expenditure called for the implementation of this Act and the regulations shall be exclusively borne by the University
(2) Nothing herein shall be deemed to prevent the Government ofNagaland for contributing on giving a grant to the University for promoting academic excellence.
Funds of University
47. The University shall operate the following two funds namely;
(i) The Endowment Fund
(ii) The General Fund Endowment Fund Endowment Fund 48 (i) as the University has already set up an Endowment Fund with Rupees One Crore to begin with, into which, further amounts, as determined by the Government by the Governing Council shall be credited every year
(ii) The University shall have power to invest the Endowment Fund in such manners as may beprescribed by regulation ( 3 The interest, dividends on other forms of growth ofthe money from the Endowment Fund on account of deposits, investments etc shall be credited to the Endowment Fund
(4) When a resolution by the Sponsonng Bodies or an Act by the Nagaland Legislat~veAssembly fordissolution of the University ispassed, all Moneys in the General Fund and all otherreceipt ofthe Universityonall others, shall stand transferred to the Endowment Fund for exclusively applying the Fund for the proposes of rehabilitating the students and other affected by such dissolution;
Provided that the quantum of moneys in the Endowment Fund shall be reviewed on a five yearly basis by the Governing Council and at the end of such review, if the fimd position is found to be reasonably comfortable, one-third of moneys in the Endowment Fund may be withdraw and credlted to the General Fund for purpose of developing of infrastmctural of the University of two-thirds of the members ofthe Governing Council vote in favor of such a proposal
Provided further that no such transfer as in the first provision shall be made once a resolution or an Act for dissolving the University has been passed General fund, 49 (1 ) The University shall also set up a General Fund into which the following shall be credited:
(i) Contributions and grants made by Sponsoring Bodies;
(ii) Contributions andgrants made by Government ofNagaland;
(iii) Contributions and grants made by the University Grant Commission;
(iv) Contributions and grants made by the Central Government;
(v) Contributions and grants made by other organization inIndia and aboard, subject to laws in force;
(vi) Bequests, donation, endowments or other grant made by other grants made by private individuals and organization;
(vii) Income received by the University on account of fees and other charges;
and
(viii) Amount received fiom any other sources.
(2) The funds shall be deposited in a banking institution or held in shares, securities, debentures or in any other from as may be determined by regulation and as far as possible they may be held in such form which does not pose serious risk.
(3) The funds shall be operated exclusively for the purpose ofthe University in such manner as may be prescribe by the regulations.
Funds for sponsored schemes
(50) The contributions, funds, amounts, grants received for a sponsored scheme shall not be credited to the University Fund but shall be kept separately and utilized only for the purpose of the scheme. The staff required to execute the sponsored scheme shall be recruited in accordance with the terms and condition stipulated by the sponsoring organizations Annual accounts and audit:
(51) 1. The Annual Account of the University shall be prepared by the Finance Officer under the direction of the Executive Council
2. The accounts ofthe University shall be audited everyear by certitied auditors duly appointed by the Executive Council;
3. The annual accounts and the audit reports shall be first approved by the Finance Committee before presented to the Governing and Executive Comcik
4. The Executive Council and the Governing Council, in that order, consider the annual accounts and audit reports and make recommendations in regard thereof for further action by the Finance Committee which shall give an Action Taken Report to the Goveming and Executive Councils at the earliest Financial estimates:
52 O The annual budget for a financial year shall be prepared by the 'Finance Committee weU before the commencement ofthe financial Year
(2) The budget will thereafter be considered by the Executive Council and then finally approved by the Governing Council
(3) Expenditure in excess of the budget in a financial year in extra ordinary circumstances shall be incurred only with the approval of the Executive Council
(4) Such excess expenditure shall further be approved by the Governing Council at the time of approving the annual budget for the next financial Execution of contracts: